Draghi: governments not ECB should fix crisis

June 6 - The European Central Bank put the onus firmly on euro zone governments to solve the bloc's debt crisis, dashing expectations it could take near-term action despite saying the currency area's economy was under increasing threat. Andrew Potter reports.

▲ Hide Transcript

▶ View Transcript

If investors thought the European Central Bank was about to help struggling euro zone banks at its monthly meeting they were quickly proved wrong.
ECB head Mario Draghi said there would be no easing of monetary policy, and interest rates would stay at one percent.
(SOUNDBITE) (English) EUROPEAN CENTRAL BANK PRESIDENT MARIO DRAGHI SAYING:
"Economic growth in the euro area remains weak, with heightened uncertainty weighing on confidence and sentiment, giving rise to increased downside risks to the economic outlook."
Draghi praised the European Union's move towards more complete economic integration.
But as EU officials urgently explore ways to rescue Spain's heavily indebted banks, Draghi played down the prospect of providing lenders with cheap loans for the third time.
He also said the ECB would not force any country to take aid from the European Financial Stability Fund.
(SOUNDBITE) (English) EUROPEAN CENTRAL BANK PRESIDENT MARIO DRAGHI SAYING:
"I don't view it as the ECB's task to push governments into doing something. It's really their own decision whether they want to access the EFSF or not."
Once again it's down to European political leaders to try and reach a solution that so far so has far eluded them.
They'll meet at a summit later this month.
Andrew Potter, Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products: